Author: Robert Duff-Silsby

We are all aware that the number of electronic devices connecting to the internet is growing rapidly. It started with mobile phones, but now extends into just about every facet of our lives, whether it’s our fridges, cars, watches, footwear, or even the machinery we use at work. It’s making our experiences more responsive and personalized, as well helping businesses reduce costs and become more efficient. In fact, it’s growing so rapidly that it’s expected that there will be approximately 12.86 billion devices or sensors connected to the internet by 2020, and that’s just in the consumer segment alone. That’s nearly twice as many as in 2017. It’s no surprise that the internet of things (IoT) has become the new buzzword. However, there is growing recognition that the current systems used to process the vast amount of information received from IoT devices is limited.

To begin with, there are few options available to store and process the vast amount of information provided by IoT devices. Some estimates predict this to be nearly 500 zettabytes per year (one zettabyte is equal to one trillion gigabytes). The current method to handle this volume is to build large, centralized facilities to manage the data. Such an arrangement has caused many to worry about the security of information collected, as well as who will be monitoring IoT data and therefore have access to the personal information collected. Trust in centralized storage has been severely tested throughout the years, and we only have to look at recent examples of privacy breaches to explain the limitations of having information stored in this way. As a result, it can be argued that trust in IoT is the biggest issue that needs to be overcome as we progress forwards.

The Blockchain of Things (BoT)

The advantages of blockchain here have been well documented and complement IoT extremely well. As a decentralized system, it improves trust because there isn’t a need for a single entity to store and process the information. By cutting out the middleman (IoT storage facility), there is better transparency, as you know that the information being received comes directly from the device. The distributed ledger of the blockchain also ensures that this can never be altered, providing a permanent record, regardless of any future security breaches. There is added benefit to decentralizing IoT when it comes to the speed of processing data. The current cloud storage systems being used to handle this information will become a bottleneck as volume increases. Duplicating the blockchain across a network of computers and devices rather than a single location could not only reduce the speed at which information can be accessed, but also provide greater stability in the network.

So why hasn’t the use of blockchain exploded in the IoT space? Despite the many benefits, there are still issues limiting the adoption of the BoT. Firstly, because blockchain requires intensive computational resources, most IoT devices have limited storage and processing capabilities needed to transact secularly within the network. The intensive mining requirements and the encryption and decryption of data is therefore beyond the capabilities of most devices. Secondly, the blockchain requires devices to remain connected to the network constantly in order to verify all new transactions. This means that IoT devices cannot be switched off, and will have to be permanently on and using resources. Thirdly, blockchain is currently constrained by scalability, which therefore extends to the BoT. With such large volumes of data being produced by devices, the resources needed store the ledger, process transactions, and maintain the network can become immense.

The Solutions 

To overcome these challenges, the main focus currently is to bring blockchain technology to the edge of the IoT network. By improving the collection and storage of data, IoT devices can remain in their current state whilst leveraging the benefits of blockchain. This overcomes the need to by constantly communicating with the network or experience excessive power and memory consumption. To get a better idea of how this is being deployed, we’ll look at some of the technological innovations being introduced by Intchain, one of the leading players in this field.

Distributed cloud – instead of centralized servers storing information, a distributed cloud uses the Inter-Planetary File System (IPFS) to spread information out across a connected network of storage devices. When a file is uploaded, a map is created which defines where the information is stored. When you request a file, it follows a path to collect all the pieces of information to be delivered. It is therefore much faster than your typical peer-to-peer file sharing that you may be familiar with, as a file is delivered in full, rather than simply directing you to where a file is stored for you to then download.

Fog computing – this is designed to reduce the immense volume of raw data being sent directly to the cloud. Simply put, it is a number of physical machines that are connected to each other, and designed to collect, categorize, and analyze the data in their networks. Think of this as a filter for the information collected from each IoT device. This can then be sent on to the distributed cloud, ensuring a more flexible, efficient and timely processing of data. Therefore, the cloud is used to look at the big picture, operating as a monitoring and analytical tool instead of receiving every piece of data being produced.

Software-Defined Network (SDN) – this allows data to be controlled and directed to where it’s needed. It is designed in a similar way to your mobile phone. There’s the infrastructure layer, which is the physical elements that collect and send signals. Then there’s the control layer, which collects these signals and directs it to a central controller. Finally, there’s the application layer, which allows settings to be optimized and information displayed. In a cloud setting, SDN’s are useful because it allows administrators to manage traffic loads and computing availability, ensuring a more flexible and efficient network.

There are immense possibilities for Blockchain and IoT. Considering the widespread adoption of both of these new technologies and the constant technological developments, the BoT should offer possibilities across many industries.